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BCRA extended the minimum duration to 180 days


December 28, 2023 – 18:33

This Thursday the BCRA decided to double the minimum permanence period of funds in fixed-term deposits that adjust for inflation.

Depositphotos

He Central Bank (BCRA) decided to double the minimum stay period established for the UVA fixed termsthis was decided this Thursday, after the board meeting, and, in this way increased it from 90 to 180 days (about six months).

This is how he arranged it through the Communication “A” 7929of this Thursday, December 28, in which it established that, “effective for deposits that are collected from the day following the publication of this communication, the minimum term for Deposits with the option of early cancellation in Units is 180 days. of Purchasing Value (“UVA”)”.

As stated the economist Jorge Neyro in dialogue with Ambit, it is “a measure that aims to complicate access to the inflation coverage provided by fixed terms adjusted for inflation.” And it indicates that, by extending the term, there may be less demand for these deposits, which will end December growing above 100% compared to the end of November.

For economist Fedrico Zirulnik, from the Scalabrini Ortiz Center for Economic Studies, “the BCRA’s decision seems to be in line with the banks’ reluctance to offer these instruments to their clients as a hedging mechanism against inflation.”

This responds, in turn, to the fact that the UVA fixed term yields +1 inflation and that makes it much more attractive than the traditional one, given that the annual nominal rate (TNA) went from 133% to 110%, which is equivalent to 9% monthly. Until now, the yield was 11% and banks could place the pesos in Leliq, which covered that interest, but today they no longer have that option.

Consequently, the only one left to offer the saver is the UVA, but the banks are left without shoes when it comes to guaranteeing profitability to the saver with the bonds and bills that the Government today offers as support, which is why they were reluctant to offer it. . With this measure, the BCRA winks at them because, by forcing savers to place their pesos for six months in a fixed term, it discourages their demand.

Note in progress.-





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